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October 15, 2026 at 5:46 pm #2420
BNY Mellon posted third-quarter results on Thursday that beat analyst expectations across the board — its fourth straight quarterly beat — with adjusted EPS of $2.37 against a consensus around $2.26.
– Revenue: $5.68B, up ~12% YoY, beating ~$5.55B consensus
– GAAP EPS: $2.34, up 24% YoY
– Fee revenue: $4.08B, up 12% YoY
– Net interest income: $1.42B, up 15% YoYThe custody giant is firing on all cylinders. Securities Services revenue rose 15%, Markets and Wealth Services each grew 12%, and assets under custody and administration hit $63.4 trillion, up 10% from a year ago. Pre-tax operating margin reached 38.5%, with return on tangible common equity at 29%.
The standout is management’s confidence. BNY raised its full-year 2026 outlook for the second consecutive quarter, now expecting nearly 500 basis points of positive operating leverage — revenue growth outpacing expense growth by that margin. The CFO lifted expense growth guidance to the middle of a 7–8% range to fund the stronger revenue trajectory.
The market focused on the expenses instead. Shares fell about 1.5% in premarket trading to around $136, and the stock has slid more than 10% over the past month — so this beat arrived into a skeptical tape.
What to watch next: whether fee-revenue momentum holds into Q4, and whether the roughly $4B annual technology spend starts converting into pricing power in custody and clearing.
Related reading: STT: earnings beat but stock gapped down 7% (https://bullounge.com/forums/topic/stt-earnings-beat-but-stock-gapped-down-7-on-soft-revenue-and-expenses/)
With four straight beats and a raised outlook, is BNY’s recent slide a gift for patient investors — or is the market right to worry about the expense line?
Sources: https://finance.biggo.com/news/3bfe9218-4598-4878-90e7-ec7d8c24720b · https://seekingalpha.com/news/4653299-bank-of-new-york-mellon-non-gaap-eps-of-237-beats-by-011-revenue-of-568b-beats-by-120m
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